The Electricity Company of Ghana (ECG) is indebted to the nine Independent Power Producers (IPPs) that supply the state-owned energy sector, owing millions of US dollars.

One of the IPPs, Sunon Asogli, was forced to halt operations in October because of a $259 million debt. The remaining eight IPPs have also raised concerns over the government's failure to settle payments for the electricity they have generated and supplied to the country.

During an interview on Joy News' Newsfile on Saturday, November 23, with Samson Lardy Ayenini, the Acting Managing Director of ECG, Ing. Asamoah David, explained that the debt crisis has intensified, exacerbated by fluctuations in the foreign exchange market.

“The truth is that the majority of these debts are a result of a forex shortfall.

“Each month, just from forex, we lose about 37 million. So, if you get the money and pay, getting the dollars becomes a problem. Sometimes, you will even make a payment, and it will take days or weeks before the IPPs receive it because of the dollar,” he further noted.

Ing. Asamoah further clarified that if payments were made in cedis, the debt issue would not exist.

He added that the company is making every effort to address the payment challenges and overcome the issue.“If it were in cedis, I would pay. But now, when I pay the money, the banks have to get the dollars and convert them before they pay the IPPs. And by the time they pay, if the dollar increases, it means we still have a shortfall.”

The Managing Director also pointed out that the IPPs have consented to resume operations smoothly under the new agreement.

He confirmed that Sunon Asogli would restart its operations in the next few weeks, and the other IPPs that had cut back on their power supply would also ramp up production.

These IPPs are private energy companies that generate additional power to supplement the output of the state-owned Akosombo plant.